Licence for alterations: a comprehensive guide

When living in a leasehold flat, it’s common to consider making changes to your home, some of which are more involved than others, such as adding a second bedroom or building an extension. As a leaseholder, before you get started on any work, it's crucial to understand the specific covenants within your lease and avoid any assumptions. The theme of this guide is that a flat owner will be in a far better position by seeking consent to alterations where needed, than seeking consent retrospectively.

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In this guide, we look at what a licence to alter is, the steps and costs involved, and when you may need a retrospective licence to alter. By the end, you’ll have a clearer understanding of when to seek permission and how to do so properly to avoided unwanted legal costs and enforcement for breach of covenant.

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What is a Licence to Alter?

A licence to alter is a formal agreement between a leaseholder (the flat owner) and the freeholder or management company which grants permission to carry out alterations or changes to the layout of a leasehold property. Usually, changes are only possible to the leasehold demise, which tends to the be internal shell of the property such as the internal surfaces of the walls, the floor boards and the surface of the ceiling, with things such as the joists, structural walls and external walls being retained as part of the freehold property.

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The lease should be thought of as a means of control by the freeholder over how the property is altered or maintained, which sets out a process for seeking consent for any changes that could impact the building structure, appearance, its services, or the overall integrity of the property. The classic example is the removal or carpets in an apartment with another apartment underneath; there will likely be a clause that restricts this to ensure noise nuisance does not become an issue for the occupiers of the flat below.

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A licence to alter is typically necessary for significant changes to the flat, such as removing or adding walls, replacing windows, installing a skylight, moving a kitchen or building into loft space.

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Why Do You Need a Licence to Alter?

Simply put, the licence to alter will detail what is permitted and how the work is  to be carried out. Crucially however, it represents the 'consent in writing' that is usually required by the lease.

As a freeholder, it ensures that steps are being taken to protect other leaseholders within the building and that minimum standards are kept to when works are carried out. From the leaseholders perspective, it means there is a formal paper trail to show there has been no breach of covenant, which will be important in the conveyancing process.

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When Do You Need a Licence to Alter?

The licence must be in place before any works begin. Not only does this avoid a breach of covenant, it will also ensure that any objections from the freeholder to the scope of work can be dealt with before incurring building costs or costs or remedial work. Typical alterations that require a formal licence:

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• The removal of walls

• The replacement of windows

• Moving a kitchen

• Moving a bathroom

• Building an extension

• Swapping a bedroom

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What is the Licence to Alter Process?

​The licence to alter process can vary depending on your specific lease agreement and the specific lease covenants should always be consulted prior to starting work, but it generally follows these steps:

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1. Have drawings of the proposed works prepared

Have your architect or builder prepare clear and details plans of what is proposed, so that its clear to others and there can be no confusion as to what you want to do.

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2. Have your lease reviewed by a solicitor

The next step is to review the terms of your lease to check whether a licence to alter is required for the works you propose to carry out. Leases often contain clauses outlining which alterations require permission and how that permission should be sought. If your lease explicitly requires a licence to alter for any changes, you must follow that process.

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Consult the widely used protocol found here for an idea of what to expect.

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3. Contact the Freeholder or Management company in writing, with your plans and specification of works

If you need permission, you should contact the freeholder using the address for notices specified on your most recent service charge demand or ground rent demand - this must be provided by law. You will typically be required to submit a written request, including detailed plans of the work you intend to carry out.

It’s important to be clear about the scope of the alterations, the materials to be used, and the expected timeline for completion.

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4. Agree the formal licence for alterations

​Once the freeholder has received your application and documentation, they will assess it and either approve, approve with conditions, or refuse the request. The process can take a few weeks to a few months, depending on the complexity of the work.

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The formal conditions for consent will be contained within the licence. This will cover things such as when works can be carried out (usually not at weekends), where building materials must be stored and when the works must be completed by.

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5. Begin Work

Once the licence is completed and signed by all parties, you can proceed with the alterations. Be sure to comply with any conditions outlined in the licence to alter such as the times and days work can be carried out so as not to cause a noise nuisance to others, keeping common ways clear and using builders with adequate insurance.

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6. Deed of variation

The licence is not something that is registered at the Land Registry, it is a contract that sets out key conditions. The way to update your registered leasehold title is by deed of variation, which will attach a new lease plan and formally amend your registered lease.

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Retrospective Licence to Alter

A retrospective licence to alter is required when work has been carried out without prior permission.  It is not a good position to be in because the freeholder can be difficult and make demands for giving consent, that would have been possible if consent had been requested in advance of the works starting (when demands must be objectively reasonable).

If you’ve already made alterations without obtaining a licence to alter, you may need to apply for retrospective approval. This process is often more complicated, as the freeholder may be less inclined to grant permission if the work has already been completed without approval. In some cases freeholders will seek to take advantage of the position and request a 'premium' for nothing more than not being difficult. Sadly, this practice has become endemic in leasehold law and is now normalised.

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In the case of a retrospective licence to alter, you will need to submit documentation showing that the alterations were carried out safely and comply with building regulations. You may also be required to undo some of the work if it is deemed unsafe or in breach of the lease terms or if a retrospective licence cannot be agreed with the freeholder.

​Conclusion

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Understanding when you need a licence to alter for your leasehold flat and not starting work until you have permission in place is crucial to avoid costly mistakes and potential legal complications and headaches. It is far easier to obtain consent ahead of time than it is to go to the freeholder cap in hand to request retrospective consent.

Whether you’re planning structural changes, modifying plumbing or electrical systems, or altering communal areas, always seek permission before proceeding with any work.

By following the proper licence to alter process and backing this up with a Deed of Variation of the lease, you can ensure that your renovations are done legally and in compliance with your lease terms, ensuring a straightforward process when you come to sell the flat.